3. Delfi Property Price Index
Greece is strategically positioned at the crossroad of three continents (Europe, Asia, Africa) and has been since early antiquity, a strategic node for transportation in the greater region.
Due to Greece’s advantageous location and the strategic position of its ports, it can offer competitive freight costs. Furthermore, Greek ship-owners control the world’s largest merchant fleet and due to Greece’s manufacturing and maritime tradition, availability of know-how and skilled labour is in abundance.
3.1 Logistics Market Overview
Today, the Logistics industry represents 10.8% of GDP while maintaining a significant margin with potential to expand even further. The logistics sector in Greece includes a number of global 3PL (3rd Party Logistics) providers specialised in managing goods (storage, preparation and distribution) and many small-medium enterprises (SMEs) offering a range of services. Kuhne & Nagel, DHL, Schenker, Geodis, Panalpina and Express are currently operating in Greece. Hellenic Federation of Industries (SEV) has been recently created with the aim to improve collaboration between logistics providers and the rest of the Greek economy.
Important action is also made by the Greek Government for the creation of logistics hubs that will enable the growth of commercial transport in Greece. More specifically, law 4302/2014 enacted in 2017, enabled the publication of the relevant decision in the Government Gazette. Among other issues, it defines procedures related to the creation of logistics hubs in the country that will allow the sector to grow and expand, contributing even more to the overall economy.
The main logistics locations in Greece are divided into the Attica logistics property markets (that are mainly located at the entrance of the city of Athens and the port city of Piraeus) and Thessaloniki logistics property markets, all of which have immediate access to both ports and international motorways.
3.2 Attica Logistics Market
- Athens North (Metamorfosi, Likovrisi, Kifissia, Agios Stefanos, Krioneri)
- Mesogeia, Attica East (Markopoulo, Koropi, Spata, Peania)
- Piraeus (Drapetsona, Perama, Agios I. Rentis)
- Attica West (Aspropirgos, Magoula, Mandra, Elefsina)
- Viotia, Attica North (Inofita, Schimatary and Avlonas)
3.3 Thessaloniki Logistics Market:
- Agios Athanasios
Also, there are multiple industrial zones in Greece. According to the Impact Study of the Hellenic Federation of Industries (SEV), businesses that operate within organized business infrastructures ensure lower installation costs up to 25%, savings in street lighting and cleaning costs up to 42%, a significant reduction in real estate tax of up to € 54,000, a significant reduction in administrative costs, as they are exempt from the obligation to install and renew it, and are encouraged to export and innovate.
4. Rent / yield market
The logistics property market, which closely follows the growth pattern of the overall Greek economy, expanded considerably during the period 2005-2008, driving prime rents from €4.00m2/month in 2004 to as high as €6.00m2/month in 2008 for high quality logistics spaces in certain areas. By 2009, the economic crisis had a substantial effect on the logistics property market that noted a significant fall in demand and decrease in prime rents to below €1.00m2 per month in some cases. Increased interest and limited supply led rents marginally higher for prime properties in 2018.
- Prime logistics facilities in Attica:
- €3.00 - €3.75 per m2 per month
- 10.25% - 10.75% gross yield
- Prime logistics facilities in Thessaloniki:
- €1.50 - €2.25 per m2 per month
- 11.00% - 12.00% gross yield
- Non-Prime logistics facilities:
- €1.00 - €1.50 per m2 per month
- 12.00% - 13.00% gross yield